Turkish property market bounces back
After a lull in July following the failed coup attempt, confidence has returned to the Turkish property market.
Property Turkey director Cameron Deggin says the slowdown was just a blip on the property landscape.
“To anyone on the outside looking in, the news reports seemed alarming. But the Turkish economy and overall political situation is very stable, and bouncing back was inevitable once the dust settled. Now, it’s business as usual.”
August saw a 2% rise in property prices over 2015, according to the Turkish Statistics Institute. Some 114,751 properties changed hands in August, a 41% increase over July.
Deggin says Turkey’s appeal is enduring, due to its stability and upward economic trend.
“Turkey’s position outside the Eurozone has meant the country’s been insulated from the impact of the recession, and lately, the shockwaves from Brexit that will no doubt be far reaching. With a steady economy and a dynamic young workforce driving domestic demand we expect property prices to continue their upward climb, retaining Turkey’s reputation as an investment and lifestyle property destination.”
Of the homes sold in August, 1512 homes were sold to foreign buyers, with 390 of these in Istanbul. Antalya came in second place with 370 properties sold to overseas buyers. Iraqi buyers topped the charts at 267 properties, followed by Saudis, Kuwaitis and Russians.
Deggin says while Istanbul is the most popular city for real estate sales, especially apartments Istanbul, Antalya and Mugla remain sought after, a fact that is backed up by Rightmove, who identified that Mugla was the most searched-for Turkish region among foreign buyers.
“The appeal of a home by the sea is still strong, especially amongst European buyers,” Deggin says. “In Turkey, prices are still low enough to allow buyers a decent amount of choice in property in coastal regions.”
The fact the government has eased residency rights and permits for foreigners means buyers are also attracted by the improved bureaucracy, Deggin points out.
As well as receiving an automatic year’s residency upon house purchase, would-be residents can also apply for permits through a private company, and permit lengths are now much longer, especially for families.
The 120-day rule - which dictated how long you could stay outside Turkey on your residence permit - has also been abolished.
"Foreign buyers are now easily able to invest in Turkey and enjoy all the associated perks that come with that," says Deggin. "We're optimistic that the property market will remain stable - and lucrative for our investors - for a very long time."